COUNCIL Tax in Bracknell Forest will not top £1,000 next year, despite fears residents faced huge bill increases.

The borough council said last week the average band D household would pay £810, a rise of eight per cent from £750.

However final bills for the coming year will not be known until a full meeting of Bracknell Forest Borough Council on Thursday.

The council will be asked to approve the new recommendations and the additional police and town and parish council levies that have yet to be announced.

It had been feared that with new government spending guidelines, and councils being in effect free to set their tax levels, Bracknell could be lumbered with a 33 per cent rise should the council wish it.

A meeting of the council's decision-making executive, said that although the eight per cent rise was necessary to help fund a £6 million shortfall in the budget brought on by new government grant allocation measures, residents could still count themselves lucky.

A rise of 20 per cent was needed to cover the shortfall, but the council says it will use its reserve monies to ensure a softer blow for residents.

The council tax rise was announced at the same time the council's proposed budget for 2003/04 was revealed, with £100.5 million earmarked to provide essential services. Cllr Paul Bettison, leader of Bracknell Forest Borough Council, said the budget was once again "robust" and "prudent".

He added: "This budget ensures we will meet our priorities, maintain quality services and make improvements.

"We have saved money through increasing efficiency of services and made good use of reserves in a planned and prudent way.

"The government told us that our Council Tax should rise by 33 per cent but our actual increase is well below this and we are making a major investment to maintain and improve services.

"Residents will hopefully be grateful we have implemented the whole budget package whilst limiting the Council Tax rise to 7.9 per cent.

"Put another way, we have managed to keep the rise to inflation plus £39 to deliver a significant increase in the resources that are available to our schools."

However, leader of the Labour group Austin McCormack said it was "not all good news" and that residents should not be duped by the council's earlier "scaremongering" about possible huge tax hikes. He said: "The council want to be seen as the saviour of Bracknell but they are not.

"They are still selling Bracknell short.

"The real issue is this hidden tax of two per cent to pay for the smart card project, that is a big hole that will be filled by the taxpayer.

"Yes it's a lower level tax thanks to the support of the Government but it's not all good news.

"It's about choices and where the council is choosing to put taxpayers' money."

Meanwhile the borough's 40 schools emerged as real winners of the new budget proposals, with almost £60 million earmarked for education next year.

The total budget of £100.5 million represents an increase of 11 per cent over the current year's budget.

The figures include:

> £60m for education, including extra for increases in teachers' pension and pay.